MANAGEMENT REPORT

7:45 PM: OPEN SESSION – Call to Order (Please be courteous – no audience participation is permitted. Speakers will be recognized by the Chair.)

Roll Call – Confirm Quorum

Committee Reports

Board Report: George Pauley

Action Items – Old Business

Updated Charter for News and Social Media Committee

At the August 11, 2014 Board Meeting, the Chairman for the News and Social Media Committee presented an update in their committee charter for Board consideration. Attached is the current committee charter and the requested committee charter.

A sample resolution follows:

I move the Board of Directors amends the News and Social Media Committee Charter as proposed by the Committee.

New Business

Motions from Closed Session

If any motions are necessary as a result of Closed Session discussion, a resolution can be proposed at that time.

Ad-Hoc Committee for Rules Review

Management requests the Board consider reforming the Ad-Hoc Rules Review Committee. Particularly, we would like this Ad-Hoc Committee to review the construction rules, bed bug rules, health club rules, and to continue working on format improvements.

If it is agreed, the Board should vote to form the Commission, and assign a liaison to work with the Commission on this assignment. Previous volunteers who have indicated their willingness to serve again are Agata Drygas, Unit 2015, Maggie Burnes, Unit 4114, and Carlos Vargas, Unit 4914. The Board should decide if it wishes to reappoint the volunteers from the last Ad-Hoc Rules Review Committee or issue a call for new volunteers. We respectfully suggest both actions be taken.

A sample resolution follows:

I move the Board of Directors forms an Ad-Hoc Commission, to be named the ‘Ad-Hoc Committee to Review Rules and Regulations’ with Board Member assigned as the commission liaison, and appoints the following owners to the committee and directs Management to make a call for volunteers to serve as members.

Audit Proposals

After the acceptance of the 2013/14 fiscal year audit our contract with the auditing firm Picker & Associates has been completed. As such, we have submitted requests for proposal to 6 firms. Of these, four have submitted bids for the Board to consider.

Picker & Associates:

$4,700 years 1-3, $5,000 years 4&5

Vote tabulations: $400

Mrjenovich & Mcgowan, Ltd:

$4,800 years 1&2, $4,950 years 3-5

Vote Tabulations: $465

Condo CPA:

$5,350 years 1-5

Vote Tabulations: $750-850

Frost Ruttenberg & Rothblatt:

$5,800 years 1-3, $6,000 years 4&5

Vote Tabulations: $2,200-2,800

Property Systems, Limited has indicated they will hold their vote tabulation bid at $750 for the 2015 Annual Meeting.

Currently we budget $5300 per year for auditing, and $900 per year for vote tabulation.

(For the Board, a bid analysis is attached.)

Management recommends the Board approve the audit proposal from Picker and Associate’s. They are the lowest bidder, we have had a positive experience working with them and they have exceeded our expectations over their tenure.

We will not recommend a resolution related to vote tabulation services.

A sample resolution follows:

I move the Board of Directors approves to perform the fiscal year end audits, as proposed, in the amount of $ for a term of years.

We will not recommend a sample resolution for vote tabulation services.

Triennial Tax Reassessment

The triennial reassessment for the year 2015 is expected within the next year. Typically the Association hires an attorney to represent the Association as a whole to reduce these fees for all the unit owners. Management has received three bids from attorneys to perform this work. We are anticipating a forth bid and will let the Board know as soon as it is received.

Terrence Kennedy: 10% of the total savings, limit to $18,500

Kovitz Shifrin Nesbit: 12% of the total savings, limit to $12,500

Arnstein & Lehr LLP: 12% of the total savings, limit to $15,000

The current attorney, Terrence Kennedy has been proactive and aggressive. They are currently working on refunds and the lawsuit related to the commercial units. We have some time yet before reassessment, so we would suggest asking them to lower their limit of $18,500. You could pass a resolution with a “not to exceed” limit.

This is a bit early to consider a contract, but given the timing with the budget, it would help to have this decided now so we can have a more certain figure to propose.

(For the Board a bid analysis is attached.)

A sample resolution follows:

I move the Board of Directors approves to perform the triennial tax reassessment, as proposed, for the amount of % of the savings with a limit not to exceed $ .

No Admit Policy

This action item has been requested by a Board Member for discussion of the building’s no-admit policy. It is our understanding the proposal is to change the no admit policy such that all units automatically have ‘No Admit’ Status unless Management is given written authorization by the unit owners to allow entry.

We have no comments or recommendations at this time as we do not have a specific policy to comment on.

Construction Requests

Unit 303: Remodel of Unit to include the following: Floors – Installation of new hard wood flooring and tile in the kitchen and bathroom. * Chief Engineer stated the underlayment of the flooring must adhere to Park Tower guidelines, and that the hard surface flooring must follow the Rules that 80% of the flooring must be covered with area rugs.

Unit 2015: Remodel of Unit to include the following: Bathroom – Remove tile, cement wall, shower door, and vanity; Kitchen – Replace kitchen tile; Floors – Replace carpeting throughout. * Chief Engineer stated the owner must use a licensed electrician and a licensed plumber; waste line must be capped during construction; the owner must call when the walls are open to schedule the branch line replacements.

Unit 2606: Remodel of Unit to include the following: Flooring – Remove existing baseboards, tiles, carpet, and install engineered hardwood floor throughout; Kitchen – Replace appliances. * Chief Engineer stated the underlayment of the flooring must adhere to Park Tower guidelines, and that the hard surface flooring must follow the Rules that 80% of the flooring must be covered with area rugs.

Unit 4111: Remodel of Unit to include the following: Kitchen – Demolish half wall between kitchen and living room, replace cabinets and appliances; Closet – Install washer/dryer unit; Floors – Install hardwood engineering floor in living room, hallway, and kitchen. * Chief Engineer stated the owner must use a licensed electrician and a licensed plumber; waste line must be capped during construction; the owner must call when the walls are open to schedule the branch line replacements; the underlayment of the flooring must adhere to Park Tower guidelines, and that the hard surface flooring must follow the Rules that 80% of the flooring must be covered with area rugs.

Unit 4906: Addition to existing remodeling plans: Living Room – Install new sound isolation ceiling tiles with a 5” drop ceiling (ceiling will stop short of the windows to allow for existing curtain tracks to remain). * Chief Engineer stated the owner must schedule the service elevator for all deliveries and is responsible for removing debris from the building.

A sample resolution follows:

I move the Board of Directors does hereby approve the remodeling of units 303, 2015, 2606, 4111, and 4906, as submitted by the unit owners, following the recommendations of the chief engineer as outlined in their written specifications and in accordance with the Rules and Regulations and remodeling guidelines of the Park Tower Condo Association.